The commission
said the practice is restrictive and unfairly creates barriers for other market
players, thereby undermining the spirit of competition though conferring unfair
advantage to one supplier in violation of the law.
It also said
the practice is not only unfair, but exploits parents.
Preliminary
investigations by the commission are contained in a Government Gazette
published last Friday where it undertook a probe of Queen Elizabeth School,
which is facing allegations of forcing parents to buy uniforms and textbooks
from their preferred suppliers in return for enrolment.
The probe is
expected to bring sanity, particularly boarding schools where parents can only
get places for Form One and Form Five for their children provided they buy
uniforms and textbooks at chosen suppliers.
Parents have
complained about the practice as they say some of them are tailors who can
produce their own uniforms and jerseys coupled by the fact that some of the
chosen suppliers sell poor quality of products.
“It is hereby
notified, in terms of section 28 of the Competition Act [Chapter 14:28] that
the Competition and Tariff Commission has commenced an investigation into
alleged restrictive practices by Queen Elizabeth School. Section 28 of the Act
empowers the Commission to undertake an investigation into any restrictive
practice, as defined in terms of section 2 of the Act, which the Commission has
reason to believe exists or may come into existence,” reads the notice.
It was noted
that Queen Elizabeth was one of the schools that were forcing parents to buy
uniforms and stationery during enrolment of Form One and Form Five pupils.
“It is alleged
that Queen Elizabeth School engaged in exclusive dealing in the production,
selling, distribution of school uniforms and textbooks to prospective Form One
and Form Five learners during enrolment. It is alleged that the school was
forcing parents and learners to buy school uniforms and textbooks from only one
supplier, i.e., Giplic Fashions (Scott Adams) and Gramsol Publishing,
respectively,” reads the notice.
“It is further
alleged that before confirmation of admission, one should purchase uniforms or
textbooks from the school, or the preferred suppliers. The Commission has
preliminary concerns that the alleged practice may result in parents and
learners’ choices of school uniform or textbook suppliers being limited to only
Giplic Fashions and Gramsol Publishing.”
The Commission
noted that the practice, if allowed to continue will close the door for other
market players, thereby creating an unfair advantage for the preferred
suppliers.
“The practice
may also create barriers to entry or foreclose other suppliers in the relevant
market and lead to exploitation of parents and learners. It should be noted
that the commencement of an investigation neither presupposes that the conduct
being investigated is anti-competitive nor that Queen Elizabeth School and the
suppliers mentioned have violated the provisions of the Act,” reads the notice.
One of the
objectives of the investigation is to establish whether indeed the school is
restricting parents on procurement of uniforms and textbooks and if so, whether
it had impact on competition.
“The Commission
will, as provided in section 28 of the Act, conduct an investigation to
establish whether the alleged practices directly or indirectly restrict
competition. In view of the foregoing, the Commission hereby gives notice to
all interested stakeholders and the general public to submit their written
representations to the Commission stating how they have been affected by the
issues under investigation, not later than 14 days from the date of publication
of this notice. Emails may be sent to [email protected] or
enquiries@competition. co.zw or submit hard copies to: The Director Competition
and Tariff Commission, No. 23, Broadlands Road, Emerald Hill, Harare,” reads
the notice.
“NB: All
representations submitted to the Commission will be treated in strict
confidence and will only be used for the purpose of this investigation.”
Section 28 of
the Competition Act confers power on the commission to investigate restrictive
practices, mergers and monopoly situations.
It carries out
such investigation as it considers necessary, including any type of business
agreement, arrangement, understanding or method of trading which, in its
opinion has the effect on restrictive practice.
It also
empowers the commission to investigate monopoly situation in business.
In its
investigation, the commission shall have the powers that are conferred upon a
commissioner by the Commissions of Inquiry Act. Herald
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